Word Of Mouth

Question 1

Where WoM is not applicable

Answer 1

1. Nobody loves your product
2. Your product has poor retention. Fix that first, Poor retention breaks WoM growth loops
3. Your product does not have a market fit.
4. Your customers are mostly enterprise

Question 2

The Old Ways of Measuring Flaws

Answer 2

1. Net Promoter Score, Can’t quantify actual growth impact. In addition, just because someone says they would recommend it to a friend, doesn’t mean they actually do
2. Attribution Surveys, Suffer from low response rates and respondent bias - the users who respond are different from the ones who do not
3. Social Listening Tools, Miss Dark Social, chat and WhatsApp, and offline word of mouth

Question 3

Two New WoM Measurement Methodologies

Answer 3

1. WoM Coefficient
   Good for
   1.1 Improving WoM Growth Loops
   1.2 Accurate growth forecasting
2. WoM Tipping Points
   Good for
   2.1 Accelerating WoM Growth Loops
   2.2 Optimizing marketing spend

Question 4

WoM Tipping Points

Answer 4

In the case of ClassDoji, the acquisition tipping point is when 3 teachers adopt a product at a school

Strategy1: Get more schools to their tipping points
Strategy2: Double down on post-tipping point schools

Question 5

What are other types of social nodes?

Answer 5

For SaaS, it is local businesses
For Creator Economy, it is the content type
For Healthtech, it is Geo, Practices and Specialists
For Gaming & Social, it is Social group, school

Question 6

WoM Coefficient

Answer 6

Engage Existing Users -> Generate WoM -> Acquire New Organics

The longer you engage your users, the more word of mouth they generate. So retention is at the core.

The WoM Coefficient quantifies the rate which active users generate new organic users

WoM Coefficient = New Organic Users / (Returning Users + non-Organic New Users)

It is a stable predictor of new organic users even with big DAU fluctuations

WoM Coefficient can be calculated by seasonality and segments